Activity 3

Cost of Quality

Objective
1. Identify the different types of Cost of quality
2. Make a computation of Cost of Quality
3. Prepare a report on Cost of quality to be used for decision making

Direction

a. Classify the following into the four types of cost

b. Compute for the percentage of the 4 cost of quality (use the template below)

COST OF QUALITY    
Downtime (V)   5,000.00
New product review (F)   500.00
Scrap (V)   10,000.00
Product acceptance (V)   13,000.00
Warranty (V)   15,000.00
Quality training (F)   1,000.00
Quality planning (F)   2,000.00
Complaint adjustment (F)   2,500.00
Retesting (V)   6,000.00
Rework (V)   9,000.00
Allowances (V)   7,500.00
Materials inspection (F)   2,500.00
Field inspection (V)   12,000.00
     
  Amount %
 Prevention costs:    
       
       
       
       
  Total prevention    
Appraisal
costs:      
       
       
       
       
  Total appraisal    
Internal failure costs:    
       
       
       
       
  Total internal failure    
External failure costs:    
       
       
       
       
  Total external failure    
  Total quality costs